Oil and Gas Prices are Rising Steadily

• The price of oil today ranges from $ 112.78 to $ 114.67.
• Natural gas continued its ongoing recovery and exceeded the level of 8.00 dollars on Tuesday amid growing open interest from investors.
• Earlier, U.S. President Joe Biden announced the largest oil release from the US SPR in order to reduce supply concerns.

Oil analysis chart

The price of oil today ranges from $ 112.78 to $ 114.67. We can say that we are still in the bullish trend and that this consolidation has not disrupted the current bullish trend. Technical support is still our bottom line. For the bullish option, we need continued positive consolidation to retest yesterday’s high of $ 115.55. Our potential following bullish targets are $ 116.00, $ 117.00, $ 118.00, etc. For the bearish option, we need negative consolidation and pullback prices below the trend line and yesterday’s support at $ 111.75. After that, the bearish pressure could increase, which would lower the price to the next potential support levels of $ 111.00, $ 110.00 and $ 108.00, and so on.

Natural gas chart analysis

Natural gas continued its ongoing recovery and exceeded the level of 8.00 dollars on Tuesday amid growing open interest from investors. In contrast, natural gas could still return to its 2022 peak at around $ 9.00. We are still in the growing channel from May 10. The bullish trend has been consistent in the last seven days after the price dropped to 6.34 dollars. If this trend continues today, our target is the $ 8.50 level. We need a break below the support line for a potential bearish trend. If that happens, our potential bearish targets are $ 8.00, $ 7.80, $ 7.60, etc.

Market overview

Earlier, U.S. President Joe Biden announced the largest oil release from the US SPR in order to reduce supply concerns. Meanwhile, according to Hellenic Shipping, Moscow’s oil supply fell 9%. Russian oil production was reported at 9.16 million barrels per day in April. This deviation of 860,000 million barrels per day raises concerns about supply problems in an already tight oil market.

Yesterday, according to Reuters, the European Union presented a plan of 210 billion euros to eliminate dependence on oil from Russia by 2027.

API report

The American Petroleum Institute (API) reported this week that crude oil withdrew 2.445 million barrels, compared to analysts’ forecasts of an increase of 1.533 million barrels.

According to API data, U.S. crude oil inventories have fallen by about 76 million barrels since early 2021 and about 18 million barrels since early 2020. U.S. crude oil production fell to 11.8 million barrels a day in the week ending May 6 – the first drop since late January. Crude oil production in the United States decreased by 1.3 million barrels per day compared to before the pandemic.